Regional Policy in Iceland

This paper pursues the mapping of horizontal intergovernmental coordination – policy and politics in Iceland. Historically, Iceland's political evolution traces back to its establishment of the Alþingi in 930 by Norse settlers, experiencing periods of subjugation to Norway and Denmark before achieving full sovereignty in 1944. Presently, it operates as a unitary parliamentary republic with a president and a prime minister, while maintaining a political system shaped by its six-century union with Denmark. Economically robust, Iceland ranks 15th globally in GDP per capita and has excelled in global gender equality rankings. The country faced severe economic challenges following the 2008 financial crisis but rebounded with a booming tourism industry and subsequent demographic shifts. Governance in Iceland is structured around a two-tier system, emphasizing municipal autonomy and a complex intergovernmental coordination framework. Despite its non-membership status, Iceland's relationship with the EU, through the European Economic Area, influences its policies, particularly in economic and environmental domains. Ongoing debates surround municipal size and autonomy, highlighting the nuanced challenges and dynamics between state and local governance in Iceland.